American Oil Well Investment

The petroleum industry is an ever expanding global enterprise, with its consumption rising continually every year. Petroleum is, after all, an essential human commodity. Gasoline and fuel, two of its most important by-products, are important for maintaining many aspects of our culture that include transportation and household.

A large percentage of the world’s oil supply comes from the Middle East with 53 percent. However, the rising prices coming from the region prompted investors to look for sources elsewhere. There is a resurgence of interest for investment in American oil wells. Oil rich areas are abundant across the US, particularly in Oklahoma, Texas, Kansas, and California. Wells that were pressured 40 years ago are still reputed to produce oil. Rework and more are now possible, thanks to newer equipments and newer technologies.
Before starting, it is important to study the market. Assess companies, operators, and industry partners well. Request a diligence report from a prospective company to assess factors such as stable finances, good history, diversification, and risk management. Choose drilling companies that have good track records. Confirm the professional ability, honesty, integrity, and past working histories of its management team and engineering staff. A professional geologist is also a prerequisite to an oil well staff. Knowing how the market works builds confidence to an investor as well.

The oil and gas industry is capital intensive, and many of its companies go back to the capital market several times before products have yet to go online. Drilling testing wells, exploration, and later production needs entail a lot of money as well. A potential investor should be ready to share a substantial amount of investment capital to a target company.

You can also opt to buy shares if you want to start conservatively. You can contact the companies themselves, even if raising capital is done through private placements. To appraise the net value of your investment, consult a licensed engineer or petroleum official. An exit strategy should be established during appraisal to ensure liquidity during the holding period.

Almost two-thirds of the oil contained in the American mainland reservoirs has been left behind because it has proved too difficult or expensive to extract. But with advanced technology and better equipments extraction rates for oil and gas have greatly improved. Oil-rich areas are abundant across the US, particularly in Oklahoma, Texas, Kansas, and California. If you are want a substantial return of profits, then invest in America’s future.

References:

http://ezinearticles.com/?Tips-on-Investing-in-USA-Oil-Wells&id=3792194
http://www.ehow.com/info_8754061_invest-oil-gas-texas.html
http://www.usoilandgas.net/about_us.htm

American Oil Investment

Ever since the first American oil wells were discovered in Pennsylvania in the 1860’s, more local reservoirs are discovered continually within the heart of the American mainland. Because of the surge of oil prices abroad, the drive to exploit oil and gas fields locally is stronger. The US accounts for more than a fifth of international consumption, with three percent of its globally-proved oil reserves. Experts estimate that abandoned wells could hold 377 billion barrels – more than double the cumulative US production to date.

Oil is one of the most essential human commodities. An oil and gas well investment is lucrative but is risky as well. After all, it is still a speculative business. This is even aggravated by the practice that new investment opportunities are not traded publicly and less regulated by government securities agencies. Investors tend to rely on the company to give timely business and financial reports before making informed decisions after closing the deal. This makes the relationship between the two parties uncertain. Potential investors should look for a company’s track record to ensure a satisfying relationship.

It is important for a prospective investor to familiarize with the industry to assess the risks and rewards. Study the economic, technical, mechanical, and geological impact of a venture before entering an investment scheme. Ask experts or call state oil and gas regulatory agencies to confirm performance and ratings of companies that you are interested. A company with good seismic information can minimize risk. Dealing with these systems is tedious at first, but it will provide you with a wealth of information you need. Knowing the industry inside and out builds confidence and will aid in your decision making as well.

Request a diligence report from a prospective company. Analyze thoroughly its past finances, history, diversification, and risk management. Look for the professional ability, honesty, integrity, and past working histories of its management team and engineering staff. A professional geologist is also a prerequisite to an oil well staff. Look also into consideration the well service. Service equipments and labor is in high demand especially when oil industry is at its peak. Shipping delays of equipment and late recruitment of skilled labor is expected. 

The oil and gas industry is capital intensive, and many of its companies go back to the capital market several times before products have yet to go online. Drilling testing wells, exploration, and later production needs entail a lot of money as well. A potential investor should be ready to share a substantial amount of investment capital to a target company.

You can also opt to buy shares if you want to start conservatively. You can contact the companies themselves, even if raising capital is done through private placements. To appraise the net value of your investment, consult a licensed engineer or petroleum official. An exit strategy should be established during appraisal to ensure liquidity during the holding period.

Be wary of companies that promises high returns without risks. This is simply questionable. Often, scam companies employ highly publicized news to make their opportunities look believable. Some will also convince unsuspecting people of investing quickly because of the scarcity of opportunity. Always investigate and rely on authorities for information.

References:

http://ezinearticles.com/?Tips-on-Investing-in-USA-Oil-Wells&id=3792194
http://ezinearticles.com/?Setting-Oil-Well-Investment-Expectations&id=257863
http://www.ehow.com/info_8754061_invest-oil-gas-texas.html
http://www.sec.gov/investor/pubs/oilgasscams.htm
http://www.usoilandgas.net/about_us.htm